The municipality Fljótsdalshérað was created in 2004 when the municipalities in the area merged. The urban districts are Egilsstaðir and Fellabær, and in the rural area there are smaller communities at Hallormsstaður, Eiðar and Brúarás. The municipality is broad and is now the most extensive in Iceland. On Januar 1st 2016 the residents were 3444.
A majority of the residents of Fljótsdalshérað is occupied with service and public service. In the area surrounding, farming is important.
